You’re in one of the golden cities in the Midwest.
Look for properties that are better than the 1% rule there. Mine are all around 1.4%. Avoid any D areas. Don’t want poor rental areas.
Look up and call all rental Management companies in your area. Get their details. Ask them if they will look over your properties that you're interested in. A good one will. Before you buy it. They don't want to manage in a poor area usually. Just by giving them an address and details on the property you're considering, like # beds and baths, garage or parking, SFR of roof, hvac, etc and sending them some pictures they can give you a good deal of info and tell you what they could get in rents there and what the neighborhood is like. And if you should buy there or not. If they want to manage there or not. They're your best consultants. Some will do a site visit for you, sometimes for a fee.
I wish I lived in your town or state. Use the rental management company. They know real estate. Having said that, I had to fire my first rental management company and the one I have now is great. First one wouldn’t do what I just listed. My current one does. But you can’t learn all of this from books. Gotta do a deal or two. Then you know. What other people know and try to warn you about. But don’t get discouraged. Takes a learning curve to get going. And you’ll waste some time, effort and money in the process. But I think you have to go through it. No pain, no gain.
My age because how hard to find fund to buy it.
Originally posted by @Phil Denton :
@Salvatore Lentini I'm an engineer (and a DISC type C). I'm aware of paralysis by analysis but I really do like to try to consider all the angles before jumping into a deal or project or anything else. I know I still have lots to do and learn before jumping into my first deal but right now I want to do these things before I really "get serious":
-Find an agent that primarily works with investors on the buying side.
-Finish LLC Operating Agreement (with my wife) and open corporate bank accounts
-Round out team - attorney, CPA, lenders, contractors, wholesalers, etc.
My goal is to buy my first property this quarter. I like the idea of having passive income (small multi-family) but I think I need to learn the rehab/estimating side of things so I'm leaning towards flipping a SFH or two or three first. Maybe BRRRR them. If a great multi-family deal crossed my path I'd have a hard time turning that down though!
If you suffer from Paralysis my Analysis, I would narrow your investment strategy.
Flipping is very different from buy and hold(passive).
There are many different types of investment properties you can buy depending on your experience/ability to fix up.
Paint and carpet touch-up - This investment property doesn't need much in get it rented out
Foundation issues/fire/water damage houses - This type of house will be the best bang for your buck but it will require a lot of experience and expertise.
Somewhere in the middle - this type of investment will need potentially a roof redone, water heater replaced, furnace replaced, mold removed, etc. You likely won't need to fix the house yourself but it would help if you had a good list of contractors.
You may want to start off your investment in 1Q with a paint and carpet touch up and move up from there.
@Michele Z. a good agent will recommend several lenders to meet a buyers needs. Not just blow someone off. But a good agent also doesn’t won’t anyone wasting their time. That’s why pre approvals are so important to agents.
Some of the tips I can give a person starting out is :
it’s ok if you don’t get a grand slam deal out of the gate .
You don’t need to focus on step 11 -just get started
You donot need a giant pile of money to get started ! Honestly it’s true
There is safety in numbers -the more doors you have the easier it gets oddly enough
Understand there will be crushing defeats and a big learning curve there will be times it can be overwhelming. Donot he surprised by this
It doesn’t have to be a beautiful newer home in a nice area you can make money in all class neighborhoods
If you don’t know something bring in those that do , don’t guess and hope things will work out
As you gain momentum you can use OPM and scale out but for now just buy something
You WILL suffer setbacks It will not be a cake walk and you must not give up . If it was easy everyone would be investors . You must Keep moving and fail forward .
Surround yourself with others smarter than you or more experienced - your network is your net worth
You must network with others to grow And scale .If your doing everything yourself alone you will likely never be truly wealthy until others come on board
Hello! Something that’s holding me back from buying my first investment property is financing and confidence really. If you know anyways to come up with creative funding I’d appreciate it. I’ve already heard about seller financing.
Thanks for starting a good discussion. What's holding me back is that I am looking to invest OOS. What's holding me back is #1 Selecting a market to invest in. Ideally my first OOS investments will be within short flight/driving distance for me. So I am looking between Nevada and Arizona - leaning towards the Phoenix market. The issue I'm having is that Phoenix MSA is an enormous area. So I need to narrow down my search - but this is difficult to do without knowing the area and not being able to see it in person. My #2 issue is with how to build my team to help me accomplish #1 (narrowing my market) and be the "boots on the ground." My fear is in the fact that I have to select people to view my property for me, estimate rehab costs, and then perform those tasks on time, professionally and without taking advantage of me. I'd be able to travel every few weeks to the area but I would need someone who would be able manage the day-to-day process of rehab on the property. I wouldn't have issues with expanding into any OOS market as long as I have my core team in place - but building this team and ensuring they have our collective best interest in mind is the thing that's holding me back!
Originally posted by @Leslie N Harmon :
I haven't been able to find the right properties on my own. I also in the past was unable to get Realtors to provide me with listings. The Realtors wanted to make sure I had been approved for financing 1st.
Is it required to get approved before looking for a property?
And also Analysis paralysis is also an issue for me. Thank you.
its not required to be approved first but the realtors dont want their time being waisted. You got to bring some value to them for them to give you something.
Originally posted by @Salvatore Lentini :
I have a rental portfolio of 127 units and soon to be 147 units. I've experienced a lot: wholesaling, flips, single family rentals, multi family, office, triple net commercial, development...and now it's time to give back :)
So, fire away...what's holding you back from getting started? If you could have your biggest questions answered, what would they be?
I just Bought my first deal. Two lots and Two houses for the price of one. I just didn't take no for an answer and made it happen. had to pay asking price but negotiated all repairs in it. jump on em fast and don't hesitate.
I actually have one investment property already. Bought it 4 years ago. However, haven't been able to find anything else. I live in a hot market - Denver area - and no matter which house I am looking at I come up with a negative monthly cash flow. This is because I am planning on using our HELOC as a down payment, and in the model I am assuming that I am paying off HELOC as well as the new mortgage.
All in all, it seems like the biggest factor in moving forward is finding a good deal - priced well with enough equity. Now the question is - what is the best way to find those, especially if I have a demanding full time job?